Auto and Car Insurance

is the vehicle insurance laps if tht claimed for small damage to the vehicle? i mean is the single insurance c

CLAIMS FOR NO OF TIMES ?????????

Public Comments

1. finish asking the question first, dont be so nervous. if you screwed up as an uninsured driver, you are probably sol when in doubt call your insurance carrier, they will tell you the score and if you have any doubts have them put it in writing for you.
2. If I had any clue what you were asking, perhaps I could answer.
3. only if it is in a total loss condition
4. Here are 3 articles, would help you to find your answer:: Automobile insurance premium is calculated based on different parameters. Car insurance is not only compulsory by law, but also a prudent policy for vehicle owners. As per the rules, all motor vehicles should be insured at least for third party liability. However, considering the high risk of accidental damage to your vehicle and the high cost of repairs especially for newer or premium cars, it is advisable to cover your vehicle under a comprehensive insurance policy. The minimum legal insurance under Motor Policy A, or ‘Act Only Policy’ covers unlimited liability in case of death or bodily injury to third party, and damages to third party property to the extent of Rs 6000. A comprehensive insurance policy (Motor Policy ‘B’) covers not just third party liability but losses due to accident, fire, theft, floods, earthquakes, and other specified perils. Damages to third party property above Rs 6,000 can also be covered under this policy. Car accessories like music systems, air-conditioners and so on can be covered by paying additional premium. By paying extra premium, you can also cover against personal accident to yourself, spouse, family members, employees and so on. Insurance premium You can obtain an insurance policy by paying a premium to an insurance agent or to the insurance company. The premium amount is calculated based on the car’s market value, which is a function of the make and model, condition of the vehicle and the resale value, and the value of its accessories. Premiums are paid annually, and the insurance is valid for a period of a year. The market value of the car should be estimated every time you renew your premium. The insurance must be renewed prior to the expiry date of the policy, as it is illegal to drive without a valid insurance cover. The insurance premiums are regulated by the All India Motor Tariffs, and are therefore uniform across insurance companies. For a comprehensive policy, the premium covers all stated risks, but if you wish to exclude certain risks – such as earthquake – you may inform the insurance company and they will offer you a discount on the insurance premium. You could also opt for voluntary excess i.e. undertake to bear a fixed percentage of the loss for every claim, and thus avail of a discount in premium. A five percent discount (subject to a maximum of Rs 100) is also available for members of recognised automobile associations. Motor insurance policies are normally taken for a period of one year. While you cannot insure your vehicle for more than a year, a policy for a shorter term is available, which is suitable if you are planning to sell your vehicle within a few months. The premium for this short period insurance is more expensive than the pro-rata premium for a full period insurance. No claim bonus If you do not make any insurance claims during the duration of your insurance policy, you are eligible for a no claim bonus. No claim bonuses are discounts on the insurance premium for the following year (i.e. discounts offered on the renewal premium) and are as follows: 1.No claims for one year: 20 percent discount on 2nd year premium 2.No claims for two years: 35 percent discount on 3rd year premium 3.No claims for three years: 50 percent discount on 4th year premium 4.No claims for four years: 65 percent discount on 5th year premium The discount is applicable to that part of the premium that covers ‘own damage’. You can avail the bonus when you renew your policy, or within 90 days of its expiry. If you sell your car you are eligible for the bonus, which is adjusted against the premium of a new car, if the purchase is made within a period of three years. In case you purchase a used car, you can transfer the existing insurance policy to your name by informing the insurance company within 14 days from purchasing the car. Malus On the other hand, if you make a claim in consecutive years, the insurance company will load an additional penalty or malus on your renewal premium. If you make claims every year, your malus will be as follows: 1.On 2nd year renewal premium: Nil (i.e. your no claim bonus reduces from 20 percent to nil) 2.On 3rd year renewal premium: 10 percent 3.On 4th year renewal premium: 30 percent 4.On 5th year renewal premium: 50 percent For example, if you do not claim any insurance in the first year you are entitled to a 20 percent bonus on your 2nd year premium. If you claim insurance in the 2nd year then you are not eligible for any discount on your 3rd year premium, i.e. your no claim bonus is nil for the 3rd year premium. If you do not make any claims in the 3rd year you are again eligible for a 20 percent discount on your 4th year premium. However, if you do make a claim in the 3rd year also, then you are charged a malus of 10 percent on your 4th year premium. The bonus /malus goes with the original owner since he can claim bonus on his next purchased vehicle. However, the purchaser enjoys the bonus under the seller’s policy till the renewal date. On date of renewal, the bonus/malus has to start afresh. Claims Own damage – accident: In case your car is damaged in an accident, you should lodge a complaint at the nearest police station immediately and then submit a claim form along with the police report (FIR), work estimate and copies of your RC book, driving licence, insurance policy and a covering letter to the insurance company. The insurance company will survey the car and estimate the cost of the repairs, and on submission of the final bill will reimburse you for the cost of spares and labour. Smaller claims should be processed within a fortnight but bigger claims could take longer. Own damage – total loss: In case of a serious accident where the insurance surveyor has declared your car a total loss, the damaged vehicle or its parts will belong to the insurance company. You would need to submit the original RC book, duplicate key, and complete set of documentation to transfer the car to the insurance company. Third party: The insurance company covers any amount which is legally required to be paid by the insured person to third parties, on account of their death or bodily injury arising out of the use of the insured car. Damage to third party property is covered to the extent of Rs 6,000 under Policy A, while further cover can be bought under a comprehensive policy. The insurance company also indemnifies the legal costs and expenses incurred by the claimant, if the insured becomes legally liable to pay them. In the case of injury to third party, or damage to third party property on your part, you must file a police report and inform the insurance company immediately. You should not make any commitments regarding compensation to the third party without the consent of the insurance company. All settlements, compensation etc. should be made by the insurance company only. Theft If your car is stolen, you will have to inform the nearest police station and the insurance company immediately. You will also need to obtain a duplicate RC book from the RTO. Settlement takes longer in case of theft as the RTO and the police are given a reasonable period of time to recover the stolen vehicle. The insurance company may reject any claims if the driver is driving without proper documentation such as driving licence and so on. ------------------------------- All You Need To Know About Motor Insurance - India * What is insurance? * Why do I need an insurance? * Common types of insurance * How can I buy insurance? * What is No Claims Bonus? * Who issues an insurance certificate? Click Here To Apply Motor Insurance Now - Online - FREE What is insurance? Insurance as per the Motor Vehicles Act is mandatory for every vehicle on wheels. An insurance covers you for any damage or loss of your car. Primarily it is a promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company policy: written contract or certificate of insurance; A contract in which one party agrees to pay for another party's financial loss resulting from a specified event (for example, a collision, theft, or storm damage). Why do I need an Insurance? In simple terms, you are legally required to have insurance for your vehicle. There are various types of insurance, some cover only the third party and some cover you, your car, the third party and the third parties car. You have to read the terms and conditions of an insurance very carefully, very important cover rules such as, does not cover riots, damage due to war, natural disaster etc. Common types of Insurance? The common types of Insurance are Third Party or Motor Policy A (ACT) Comprehensive or Motor Policy B Third Party or Motor Policy A (ACT) covers: Liability for Death/Injuries of third parties with the Insurer treated as the First Party, The Insurance Company the second party and the others( pedestrians, occupants of other vehicles) as third parties Liability for employees driving the vehicle- that gives you insurance against death/injuries (caused by your vehicle) of the vehicle’s employees (drivers, cleaners etc) Liability of Passengers travelling in the vehicle- which means that you(being[the owner of a taxi /bus /auto riksha)insured against the death/injury (caused by your vehicle)of the passengers Comprehensive or Motor Policy B: Compensation for the expenses incurred to the vehicle due to the collision. Damage to vehicle by accidental external means, fire, lightning, explosion, self-ignition, burglary housebreaking. Riot & strike, malicious acts and terrorist acts Earthquake Flood, inundation, cyclone etc. Landslide/ rockslide while in transit by rail, road, air, inland waterways, lift or elevator P.S. Comprehensive policy can be restricted to loss or damage due to fire or theft or both fire & theft in combination with policy a or without In case of third party insurance + fire or theft, the premium is only 25% of own damage premium + act premium In case of third party & theft, the premium is 40% of own damage premium + act premium These extended covers can be obtained without inclusion of "act" risks, provided the vehicle is not put to use. The geographical limits for use of the vehicle is India but the limits can be extended to Nepal & Bhutan without extra premium and to Bangladesh by charging an extra premium of Rs.50/- for comprehensive policy and Rs.10/- for act policies The insurance is payable every year and is valid until the midnight of same day next year. Policies can be issued for periods less than one year. In such cases, short period scales are charged, which are higher than pro-rata rates. Long-term policies can be issued for "act" only risks. How can I buy an insurance? You can buy an apply for an Insurance online with us. We work with almost all major insurance providers and we can find the best insurance for you. Click here to apply online for insurance with no hassle. What is No claim bonus? No claim discount: for every claim free year, the insured is rewarded with discounts in premium up to an extent of 65% (policy b only). In case of adverse claims, premiums are loaded with malus. For example the percentage of discounts would be something like 20% for the 1st year. 35% for the 2nd year. 50% for the 3rd year. 65% for the 4th year and afterwards Who issues an Insurance certificate? Insurance companies registered in India as Insurance providers can issue an insurance certificate. ----------------------- Are you a car owner? Find out the changes on Insurance happening From July 1 expect a steep hike in your motor insurance premium for the new motor tariff policy will come into force and major changes are in the offing especially for private car owners. In case you have a bad claims history get set to shell out a higher premium on policy renewal. But even if you have been a cautious driver with a claim-free record you do not stand to benefit much unlike earlier times. The new tariff policy allows a maximum discount of only 50 percent on premium in the fifth policy year and if you file even once for a claim within those years your discount on renewal will be nil and not reduced to the previous years level. In other words, no rewards for a claims-free past. As per the new motor tariff policy all cars will be rated on the basis of cubic capacity. Which means advanced technology and safety features of your vehicle will not be taken into consideration. Your vehicle’s insured value will be determined on the basis of the insured’s declared value (IDV), which will specify the percentage of depreciation. Which means indemnity for total loss/constructive total loss will now be based on IDV instead of the earlier IEV or market value. What is Insured’s Declared Value (IDV)? For the purpose of Total Loss/CTL Indemnity and for Premium computation, IDV will be the Sum Insured. It will be determined and fixed at commencement or each renewal of your policy. Fixing IDV: For the purpose of fixing the IDV of the vehicle, the reinstatement value of the brand and model of the vehicle (with side car (s) and /or accessories if any fitted to the vehicle but not included in the manufacturer’s list of selling price of the vehicle) including the road tax paid, proposed for insurance at the commencement of insurance/renewal period should be adjusted for depreciation. The age of the vehicle will be considered at the time of insurance/renewal. Given below is the schedule of depreciation for IDV Private Cars/ Motorised two wheelers : Age Depreciation Not exceeding 6 months Nil Exceeding 6 months but not 1 year 10% Exceeding 1 year but not 2 years 15% Exceeding 2 years but not 3 years 25% Exceeding 3 yrs but not 4 yrs 30% Exceeding 4 yrs but not 5 yrs 35% Exceeding 5 yrs but not 10 yrs 45% Exceeding 10 yrs 50% Following is the Schedule of depreciation for IDV Obsolete Model of Private cars and Motorised two wheelers. Age Depreciation Not exceeding 6 months 5% Exceeding 6 months but not 1 year 15% Exceeding 1 year but not 2 years 20% Exceeding 2 years but not 3 years 30% Exceeding 3 yrs but not 4 yrs 35% Exceeding 4 yrs but not 5 yrs 40% Exceeding 5 yrs but not 10 yrs 50% Exceeding 10 yrs 55% claims : In case of claims the maximum liability will be the sum the vehicle is insured for or the insured's declared value which will be the amount payable in case of total loss or constructive total loss (CTL) irrespective of the market value of the vehicle. also in case repair costs go over 75 percent of the IDV it will be taken to be a CTL. Do you have an anti-theft device installed in your vehicle? Well, heave a sigh of relief for you'll be eligible for a maximum discount upto Rs 500 on your insurance premium.
5. no it doesnt lapse, but they wont give u reembersment for small things like a scratch on ur car, u just cant do tht